Co-operative societies in Chandigarh to pay for transformers

Hearing both parties, the HC held that there is no binding contract between the parties enforceable through a court of law under which respondents are obligated to provide power supply for domestic consumption at the state expense.November 18, 2016, 14:00 IST

CHANDIGARH: Punjab and Haryana high court has made it clear that cooperative house building societies are liable to pay for installation of electric transformers on its premises. Division bench headed by Justice Surya Kant has passed these orders while dismissing a bunch of petitions filed by various group hosing societies of Chandigarh. They were against charges of Rs 250 per square yards from societies towards development works including supply of electricity at doorsteps.

The main argument of societies was that since electricity connections for domestic consumption throughout UT are being provided at the doorstep of all residents at the state expense without insisting for installation of individual or group transformer(s) at the private expenses, the action of the administration in adopting a different yardstick for group housing societies who have been asked to install their own transformers is discriminatory and against right to equality. UT administration, however, submitted that societies claim is wholly misconceived and misdirected as there is no term or condition in the allotment letter or in any other subsequent communication to bind the administration or the board to provide electricity infrastructure to societies at cost of the state.

Hearing both parties, the HC held that there is no binding contract between the parties enforceable through a court of law under which respondents are obligated to provide power supply for domestic consumption at the state expense.

Dismissing the petition, bench also held that occasion to ask societies to install transformers for an uninterrupted supply arose only after the construction was complete and apartments stood occupied. "In the absence of any agreement to the contrary, the petitioners could not run away from their liability to install or pay for installation of transformers and other equipment".

"Further, the obligation to install transformers at their own cost was created in exercise of statutory powers. Such powers under the statute were independent of any bilateral agreement between petitioners and the board", held the court while upholding decision of Chandigarh administration directing societies to charge for installation of transformers.